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Minters acts on hot coal deal

Minters acts on hot coal deal

TEC Coal has awarded the long-term rolling mining services contract at the Meandu Mine in Queensland to Downer EDI.

Firms: Minter Ellison (Stanwell Corporation and TEC Coal)

Deal: Long-term rolling mining services contract awarded

Area: E & R

Value: $600 million to $800 million.

Key Players: Minters construction engineering and infrastructure team was led by David Pearce (senior associate, Brisbane), with Ian Briggs and Julie Whitehead (partners, Brisbane) and Kimie Tsukakoshi (lawyer, Brisbane). Other Minters advisors included Gillian Brown (partner), Darren Sumich (special counsel), Dan Williams (partner), Deanna McMaster (associate) and Nick Sayeg (senior associate). Downer EDI’s chief legal counsel Andrew Roessel advised Downer

Deal significance: TEC Coal, a subsidiary of Queensland Government-owned energy company Stanwell Corporation, has awarded the long-term rolling mining services contract at the Meandu Mine to Downer EDI. The cost reimbursable contract, which has an initial term of five and a half years, will begin in January 2013. Downer will provide a total mine service to TEC Coal, including mine management, planning, drilling, overburden removal (including dragline and truck-and-shovel operations), coal mining, coal processing, rehabilitation, and maintenance of mobile and fixed plant. TEC Coal will provide the majority of the required plant and equipment. The Meandu mine, at Kingaroy in southeast Queensland, supplies coal to Stanwell’s adjacent Tarong and Tarong North power stations, and holds sufficient reserves to fuel the stations until at least 2025.  Stanwell assumed ownership of the Meandu Mine in 2007. Downer EDI is a contract miner that has been operating for more than 90 years and has an established presence in Queensland.

The mining services contract at the mine was previously held by Leighton Holdings subsidiary Thiess. "We were able to work with Stanwell and Downer to resolve a number of challenges by leveraging off the relationship-based contract framework – challenges such as the new PPS legislation, the carbon tax and the transition of a large workforce from the outgoing contractor in an unsettled industrial relations environment," said David Pearce.

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Minters acts on hot coal deal
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